PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Seoul Food's 2025 revenue rebounded 17.1% year on year, but operating profit remains in loss territory, leaving the gap between top-line recovery and earnings normalization as the key point to watch.
2025 revenue reached KRW 68.6 billion, up 17.1% from KRW 58.6 billion in 2024, reversing the prior year's revenue decline.
The 2025 operating loss narrowed to KRW 460 million from KRW 2.23 billion in 2024, and Q2 2026 posted a quarterly operating profit of KRW 224 million and net profit of KRW 63 million.
Major shareholder Seo Seong-hoon raised his personal stake to 12.02% after an on-market purchase disclosed on August 21, 2026, with total stake including affiliated parties reaching 19.14%.
The debt ratio remained elevated at 172.0% at end-2025, though operating cash flow stayed positive for four consecutive years from 2022 to 2025.
The value-up plan announced in March 2025 set targets of surpassing KRW 70 billion in annual revenue and adding 2-4 percentage points to the major shareholder's stake.
Seoul Food (004410) was established in 1955 and listed on the KOSPI in 1973 as a domestic bakery-focused food manufacturer.
Its core business is the frozen dough segment, supplying rapidly frozen dough products that can be baked on demand to large retailers, institutional food service, and hotels, alongside snacks, mass-produced bread, and bread crumbs.
Separately, the company runs an environmental business that manufactures food-waste drying equipment and provides entrusted management of such facilities, giving it a revenue source distinct from food manufacturing that involves contracts with local governments.
After relocating to its new Chungju plant, the company built automated production lines and climate-control facilities to enable mass production and quality improvement, and it has continued capital investment to meet growing demand for convenience food driven by the rise of single-person households.
In 2024 the company introduced new dessert-line products such as cake sheets, madeleines, financiers, and brownies, cutting costs while diversifying its product portfolio.
It has also built a production line for kkwabaegi-style street snacks in response to a trend that domestic and overseas food companies are watching closely, seeking to expand sales through this category.
The largest shareholder is CEO Seo Seong-hoon, who together with affiliated parties has continued to expand his stake through on-market purchases.
Competitively, the company is classified as a small-to-mid-cap listed food maker relative to larger bakery and food conglomerates, and it has sought differentiation through exports and specialized sales channels.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩18.3B | -₩5,393,133 | −0.0% |
| 2025Q3 | ₩17.1B | ₩7,856,891 | 0.0% |
| 2025Q4 | ₩16.8B | ₩14,936,646 | 0.1% |
| 2026Q1 | ₩15B | -₩100M | −0.8% |
| 2026Q2 | ₩16.8B | ₩200M | 1.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩64.3B | ₩1.3B | ₩700M | 2.0% | 2.4% | 150.2% |
| 2023 | ₩64.8B | ₩600M | -₩600M | 0.9% | −2.1% | 165.0% |
| 2024 | ₩58.6B | -₩2.2B | -₩3B | −3.8% | −13.0% | 188.6% |
| 2025 | ₩68.6B | -₩500M | -₩1.6B | −0.7% | −6.0% | 172.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue in 2025 reached KRW 68.6 billion, up 17.1% from KRW 58.6 billion the prior year, reversing 2024's 9.6% revenue decline.
Operating profit remained negative at KRW -460 million in 2025, marking a loss in three of the last four years, and net profit attributable to owners also posted a loss of KRW -1.6 billion. The scale of losses narrowed from 2024's operating loss of KRW -2.23 billion and net loss of KRW -2.99 billion.
In 2022 the company posted a clean profit with revenue of KRW 64.3 billion, operating profit of KRW 1.31 billion, and net profit of KRW 676 million, but in 2023, despite an operating profit of KRW 587 million, net profit swung to a loss of KRW -573 million, illustrating a case where non-operating items weighed on the bottom line.
On a quarterly basis, small operating profits were recorded in Q3 2025 (KRW 8 million) and Q4 2025 (KRW 15 million), before swinging back to a loss of KRW -122 million in Q1 2026 and then returning to profit at KRW 224 million in Q2 2026, showing continued earnings volatility.
Net profit likewise swung from a loss of KRW -485 million in Q1 2026 to a profit of KRW 63 million in Q2 2026, though the sum of net profit attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) remained a loss of KRW -887 million.
On the cash flow side, operating cash flow stayed positive for four straight years from 2022 to 2025 (KRW 303 million, KRW 2.02 billion, KRW 2.59 billion, and KRW 919 million, respectively), a feature distinct from the losses shown on the income statement.
Total equity fell to KRW 23.0 billion in 2024 before recovering to KRW 26.8 billion in 2025, while the debt ratio eased to 172.0% at end-2025 from 188.6% in 2024 but remained well above 100%.
The domestic frozen dough and bakery-ingredient market is generally regarded as a growth area supported by the rise of single-person households and expanding demand for convenience food.
Company profile disclosures cite expanded exports of frozen dough and pizza products, along with new sales channels through large retailers, institutional food service, and hotels, as growth drivers.
However, this market includes numerous large food and bakery conglomerates with economies of scale, so a smaller player like Seoul Food has sought differentiation through exports and specialized channels such as institutional catering, franchises, and online sales.
In the dessert category, competition featuring premium products and marketing has intensified, and companies from adjacent industries such as dairy have also been expanding into dessert lines, keeping competitive intensity from new entrants elevated.
The environmental business segment, based on entrusted contracts with local governments, is a comparatively small operation that serves as a revenue source distinct in character from the food business.
Fluctuations in raw material costs such as flour are a structural factor that directly affects margins across the bakery industry, representing a risk shared broadly across the sector.
In the value-up plan announced in March 2025, the company set a target of surpassing KRW 70 billion in annual revenue through annual growth of more than 10%.
It also laid out plans for the major shareholder and related parties to purchase KRW 1-2 billion worth of stock annually on the open market, adding 2-4 percentage points to their combined stake.
In practice, CEO Seo Seong-hoon continued buying shares through 2026, raising his personal stake to 12.02% and the combined stake including affiliated parties to 19.14% as of the disclosure dated August 21, 2026.
On the product side, the company continues to expand supply to corporate, coffee franchise, and school meal channels through the dessert line (cake sheets, madeleines, etc.) introduced in 2024 and its kkwabaegi-style street-snack production line.
With 2025 revenue of KRW 68.6 billion, up 17.1% year on year and approaching the KRW 70 billion target, whether this growth momentum continues into 2026 remains a point to monitor.
A disclosure regarding adjustment of conversion prices and warrant exercise prices was filed on August 31, 2026, and any resulting change in potential share volume also warrants attention.
Seoul Food remains in a range where a conventional price-to-earnings ratio is difficult to calculate, given that net profit stayed negative even over the trailing four quarters. The stock tends to trade at a premium to book value per share rather than below it.
Given the absence of dividend payments in recent years, expanding the major shareholder's stake through on-market purchases has been put forward as a shareholder-value tool in place of cash dividends.
On the earnings front, a directional pattern is visible from widening operating and net losses in 2024 to narrower losses in 2025 and a swing to quarterly profit in Q2 2026, and whether this trend persists will likely be the key variable in future valuation discussions.
That said, quarterly results have swung between profit and loss, so whether the earnings-normalization trend has become stable requires further confirmation.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
2025 revenue reached KRW 68.6 billion, up 17.1% year on year, reversing the revenue decline seen in 2024. Product diversification through the frozen dough and dessert lines, along with new institutional-catering and franchise channels, appears to have contributed to the recovery. Q2 2026 revenue of KRW 16.8 billion also improved from Q1 2026's KRW 15.0 billion.
Major shareholder Seo Seong-hoon has continued on-market share purchases since the value-up plan was announced in March 2025. As of the August 21, 2026 disclosure, his personal stake stood at 12.02%, and the combined stake including affiliated parties reached 19.14%.
This represents management committing its own capital to expand its stake, a fact relevant to assessing accountable management practices.
While the income statement showed net losses for three straight years from 2023 to 2025, operating cash flow stayed positive for four consecutive years from 2022 to 2025. In 2025, operating cash flow was KRW 919 million, moving in the opposite direction of the KRW -1.6 billion net loss. This suggests non-cash items such as depreciation may have had a significant impact on reported earnings.
After a net profit of KRW 676 million in 2022, the company recorded net losses attributable to owners for three straight years from 2023 through 2025. The net loss widened to KRW -2.99 billion in 2024 and remained at KRW -1.6 billion in 2025. Even in 2025, when revenue grew, the company did not achieve a full annual net profit.
The debt ratio stood at 172.0% at end-2025, actually higher than the 150.2% recorded in 2022. Total equity fell to KRW 23.0 billion in 2024 before partially recovering to KRW 26.8 billion in 2025, but total liabilities of KRW 46.1 billion continue to substantially exceed equity. This could constrain financial flexibility in response to external changes.
Small operating profits were posted in Q3 2025 (KRW 8 million), Q4 2025 (KRW 15 million), and Q2 2026 (KRW 224 million), but Q1 2026 swung back to a loss of KRW -122 million.
Net profit was likewise negative for four consecutive quarters from Q2 2025 through Q1 2026, with the exception of Q2 2026's KRW 63 million profit. This volatility indicates a stable earnings base has not yet been established.
The bakery business is directly exposed to fluctuations in grain input costs such as flour. If cost burdens rise with global grain price swings, margin improvement could lag even as revenue grows.
In 2023, net profit turned negative despite a positive operating profit, showing that factors beyond raw material costs can also drive earnings volatility.
With the debt ratio staying elevated at 172.0% at end-2025, the burden of financial costs such as interest expense could persist. Total equity has fluctuated between roughly KRW 23 billion and KRW 28 billion over the past four years without a clear expansion trend.
A disclosure on August 31, 2026 regarding adjustment of conversion prices and warrant exercise prices means the potential impact of convertible bonds and warrants on future share count should also be monitored.
The company has a history from 2007 in which a market buyer accumulated shares and surpassed the then-largest shareholder to take control, so the possibility of governance-stability concerns resurfacing amid ownership changes cannot be ruled out.
Its market capitalization is on the smaller side within the KOSPI, meaning share-price volatility could increase if trading volume shifts abruptly. As ownership continues to concentrate among a small number of major shareholders, changes in the free-float ratio also warrant attention.
Preliminary Q3 2026 earnings are expected to be disclosed around this time, providing a chance to check whether revenue growth and the swing to operating profit continue.
It is worth checking whether additional on-market purchase disclosures from Seo Seong-hoon and related parties continue, tracking progress toward the previously stated goal of adding 2-4 percentage points to their stake.
This will be the point at which achievement of the KRW 70 billion annual revenue target set in March 2025, and whether full-year operating profit turned positive, can be assessed.
Following the August 31, 2026 adjustment disclosure, the impact of any changes in convertible bond or warrant volume on share count and ownership structure should be monitored.
Seoul Food's 2025 revenue rose 17.1% year on year to KRW 68.6 billion, ending a two-year decline, but operating profit remained negative for the third time in four years.
The scale of losses narrowed from 2024, and Q2 2026 saw both quarterly operating profit and net profit turn positive, signaling improvement in direction. However, the return to a loss in Q1 2026 shows that quarter-to-quarter earnings volatility remains significant.
On the financial side, the debt ratio stayed elevated at 172.0%, while operating cash flow stayed positive for four consecutive years, moving independently of the income statement.
The major shareholder has continued on-market purchases since announcing the value-up plan in March 2025, raising the combined stake including affiliated parties to 19.14% as of August 2026.
The company has set a target of reaching KRW 70 billion in annual revenue based on a business structure combining its frozen dough-centered bakery operations with a dessert line and an environmental business.
The sustainability of revenue growth and the trajectory toward earnings normalization remain the key points to watch in evaluating future performance.
Report written 2026-09-29 · Data as of 2026-09-28
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.